Though unexpected, the markets still seemed to be disappointed over the developments in Europe, where overt hopes of immediate liquidity, as we have warned before , are unlikely to help. the WashPo article from a former Reuters hand covering India did not help the local markets cause either but is likely winded by Political PR engines more than one cares to admit. The Rupee made its trade without unduly affecting the equity markets at 56 yesterday and September series on the CDS is trading above 56.

However the equities are very careful about going down. IDFC again though hit by quick fix investors leaving seeing time at hand to a bigger rally and is likely to head towards immediate support levels. Axis Bank ofcourse was hit by a downgrade but with MARUTI and RELINFRA responding to the selling with a natural uptick the next day, its likely business as usual sooner than later

Reallocation of Coal Blocks(5 out of 25)  is a positive step and a PlanCom reaffirmation of non competitive bidding as a viable route also well timed and could have been used in Telecom too if not for the government and bureaucracy leaning toward competitive bidding and the excessive graft seemingly in those later telecom deals. 

Fuel hike rumors are carrying the Energy Sector this and next week. Poer NBFCs are back in the hunt as Public Sector Infrastructure still seems to be filling a critical gap in provision and performance in India. 

Posted via email from The India Investment Post